Foreword: In fact, in the past two years, we have seen Internet giants investing in cloud services, Amazon Cloud, Baidu Cloud, Alibaba Cloud, Tencent Cloud, Meituan is doing cloud, and Xunlei is also doing cloud.

Different from these giants, who use the cloud as a supplement to their own business, and are also different from various personal-oriented application tools, there are also a group of entrepreneurs who take enterprise-level services as the direction of their own businesses from the beginning.

When many domestic entrepreneurs are still immersed in the O2O boom, enterprise-level services are quietly becoming a new focus of investment institutions. But unlike consumer-facing applications, entrepreneurship in this field requires more expertise and greater patience to be likely to succeed.

Most people think that tech startups are the way to get rich. Especially those entrepreneurial stars who have created a valuation of three or four billion US dollars in three or four years, such as Jumeiyoupin Chen Ou, Momo Tangyan, and Meituan Wang Xing, people are more convinced of this.

Indeed, in the consumer-facing (To C) field, there are many companies that get tens of millions of dollars in financing within a year of starting a business. However, on the other side of the market, for those entrepreneurs who are business-oriented (To B), compared to the terrifying tens of times of annual growth of To C, the annual growth of To B companies is generally 2-3 times, and from It takes about 3 years to start a business and get an investment of tens of millions of dollars, which seems to be very deserted.

"The investment ratio of Chinese and American venture capital in To B and To C is 95% To C and 5% To B in China, while 40% To B and 60% To C in the United States." Zhang Ximeng, the former senior director of the business analysis department of LinkedIn and the current CEO of Growing.io, told Caijing Daily.

Investment institutions have divided the To B field into two categories. One is mainly based on trading platforms, such as the earliest Alibaba, or the recent emerging vertical industry rookies, such as Steel Net, Plastic Net, Resonance Technology, etc. These platforms mainly match transactions between enterprises, and the other The other is enterprise-level services, mainly enterprise-oriented tool applications, including sales management, talent management, customer service, software development, data analysis, etc.

In the United States, since the establishment of Salesforce, a cloud-based customer relationship management software service (CRM, Customer Relationship Management) provider in 1999, enterprise-level services have become an important part of the American venture capital community. At present, among the listed companies in the United States, enterprise-level service companies have become an important new force. Salesforce was successfully listed on the New York Stock Exchange as early as June 2004, with a current market value of $48 billion, making it an enterprise-level service giant.

However, in China, although there have been entrepreneurs working on it in the past ten years, and some investors have also participated in one after another, enterprise-level applications have not been the mainstream of entrepreneurship and investment in China, and there is no listed company with a market value of over 100 million US dollars. .

"We often say in our internal meetings that investing in O2O and social projects is too happy, and it's an endless project.

But we invest in enterprise-level services, which require more precise aiming with each shot. "Xiong Fei, Vice President of Jingwei China, told the "Financial World" Weekly. Xiong Fei and Jingwei China's partner Zuo Lingye, and the branch division Zhou Ziyan are mainly responsible for the investment in the enterprise service market in Jingwei.

However, people are already feeling the change. According to the data of Matrix Partners China, in 2014, there was only one startup company with a revenue of over 100 million yuan in the ToB field in China, but this year it has exceeded 10.

"2015 will be the first year of enterprise-level service investment." Zuo Lingye, partner of Jingwei China, told the "Financial World" Weekly.

Investors and entrepreneurs are confident that they are standing on the next frontier. "The 'golden age' of enterprise applications has arrived." Salesforce founder and CEO Marc Benioff encouraged them.

Investment: The wind starts at the end of Qingping

"46 consecutive failures, have you tried it?" In 2014, Cui Jian, vice president of Jintao, met with 62 investors from 47 investment institutions. Jinmu is an OA (Office Automation System, Office Automation System product) based on SaaS (Software-as-a-Service, software as a service, which means that enterprise customers obtain software services from manufacturers through the Internet), covering web pages, PCs and The mobile client allows users to associate files, emails, and save customer records and project information. However, because "the project is not optimistic", 43 investment institutions directly rejected him, while the other three investment institutions gave investment letters of intent, However, due to valuation issues, no consensus was reached in the end.

This is not the predicament the target family has faced today. For a long time in the past, the enterprise-level service market has been undervalued by investors.

Until I met Tiger Fund. In May 2014, Tiger Fund led the investment, and today it aims to complete a $10 million Series A financing. A year later, on the first day of May 2015, today's goal announced that it has received the last money of Tiger Fund's $60 million Series B financing, and the latter's valuation has therefore reached more than $300 million.

The Tiger Global Fund from New York believes that the Chinese enterprise Internet market, which can accommodate 50 million small and medium-sized enterprises, must also harbor huge investment opportunities. Therefore, BDA China Co., Ltd. is entrusted to help it conduct in-depth research in this field. In fact, Tiger Fund is so aggressive in the Chinese market because it regrets missing the last wave of corporate services in the United States.

Now, Chinese enterprise-level entrepreneurs are beginning to feel that spring is coming. Data from IT Orange shows that in 2014, there were 230 investments in domestic enterprise-level services, an increase of 243% compared to 67 in 2013, and the average investment per order this year is much higher than the previous year. As of the end of July this year, there have been more than 10 SaaS startups that have received B rounds of venture capital and above, and the financing amount has exceeded 200 million US dollars. Among them, Jintao, Beisen, OneAPM, Easy Sales,

Share Pinke, Huanxin (Note, this is the reason why they are mainly interviewed and quoted later, they are currently recognized as doing better.) and other startups have obtained more than ten million dollars in financing. Among these 6 start-up companies, Matrix Partners China invested in 4 of them.

"Four years ago, when many people did not recognize the value of the mobile Internet, we invested in Momo, and now we have gained a lot. The enterprise-level service market is equivalent to the mobile Internet four years ago, and there will be some Excellent company. So, taking advantage of the opportunity when many people have not yet recognized the potential value of some companies, we have invested in nearly 30 related companies in the past two years.” said Zuo Lingye, partner of Jingwei China.

When Jingwei China began to deploy the mobile Internet on a large scale, their behavior was judged as "incomprehensible" by the outside world, and no one could have imagined that the market value of Cheetah Mobile and Momo Technology would exceed 3 billion US dollars. Since 2013, Matrix Partners China partner Zuo Lingye took the lead and established an enterprise service team with Vice President Xiong Fei. Matrix Partners China began to systematically deploy the enterprise-level service market, investing nearly 50 startups.

Investment companies such as Sequoia Capital, Tiger Fund, IDG Capital, Northern Lights Ventures, DCM Ventures, and Legend Star are also making a series of investment arrangements.

"In the past few years, the focus of the investment community seemed to be on the consumer business, such as group buying with a closing rate of over 90%, and the recent O2O. But now, investors are beginning to understand that compared with the consumer business, which seems to be a vigorous campaign for wealth creation, in fact, corporate Premium service is a more secure choice." said Lv Guihua, President of Qiniu Cloud Storage.

Qiniu Cloud Storage was established in 2011. It is a data management platform for developers in the mobile era. It provides data online hosting, transmission acceleration, pictures, audio and video and other cloud processing services for Internet websites and mobile apps. In July 2014, Qiniu Cloud Storage received the third round of financing of tens of millions of US dollars led by Broadband Capital, Matrix Partners China and Qiming Venture Partners. Previously, Qiniu received $1 million in Series A financing from Jingwei in 2011 and Series B financing from Qiming Venture Partners in 2012.

Regarding the investment in Qiniu Cloud, Tian Suning, founder of Broadband Capital, said: "The storage that Qiniu Cloud is engaged in is the most important supporting infrastructure service in the field of cloud computing, similar to the water, electricity and coal of the Internet. Qiniu's development in recent years is The momentum is strong and we are watching closely.”

"When we communicated internally, we felt that this year's enterprise-level service has become a field that VCs are very concerned about, and it may already be ranked in the top three." Zuo Lingye believes that by 2018, China's enterprise-level service market will be born first. Categorize unicorns valued at over $1 billion (i.e. companies valued at more than $1 billion).

To a certain extent, the enthusiasm of Chinese investors comes from the encouragement of the US market. Niu Kuiguang, head of IDG's ToB project, said that there are about 45 SaaS listed companies in the United States, with a total market value of nearly $200 billion and an average market value of $1.6 billion. Niu Kuiguang said that enterprise SaaS services and enterprise security services are two very important parts of IDG's layout structure. The underlying driving forces of these two fields are different, and the same is that they both point to a large market of trillions.

Since July 2012, IDG has invested four consecutive rounds of investment in Fenxiangpinke, a sales management tool for enterprises. In July 2015, Fenxiangpinke announced that it had obtained US$100 million in Series D financing, which was jointly completed by an unannounced new investment institution and the first three rounds of investment institutions IDG Capital, Northern Lights Ventures, and DCM Ventures. In addition, IDG and Huachuang Capital jointly participated in the angel round financing of Hangzhou Tongdun Technology, which focuses on solving security problems such as banking and Internet finance, in November 2013, and followed the investment all the way. In May 2015, Tongdun announced the completion of 3000 The $10,000 Series B financing was led by Qiming Capital, with participation from Broadband Capital, IDG Capital, Huachuang Capital and Linear Capital.

In 2014 alone, there were more than 15 corporate IPOs in the U.S. enterprise services market, raising $7 billion, with a total market value of over $40 billion. In the private market, enterprise services companies including Cloudera, Slack, and Appdynamics have raised more than $10 billion in total.

"In the enterprise market, there are about 27 million companies in the United States and Europe, and the three leading enterprise service companies, Oracle, SAP, and Salesforce, have a combined market value of about $350 billion. In China, there are about 22 million companies, but none exist. There is a SaaS company with a market value of 10 billion US dollars, and there is no SaaS-based 1 billion US dollar company." Zuo Lingye said, "This is a great opportunity for all entrepreneurs."

However, in the face of enthusiastic capital, many entrepreneurs have remained calm. Ji Weiguo, CEO of Beisen, a cloud service provider for talent management software, revealed to Caijingxia Weekly that although the person in charge of the TO B project of a famous investment company is very optimistic about Beisen, he was ultimately unable to participate in Beisen due to the opposition of other partners of the institution. Series C financing. "There are really very few people who understand Sass software now. I chatted with more than 20 of their partners, and everyone asked questions that were not important. I think there are not many Chinese investors who can really understand Sass. , Zuo Lingye is the one who can understand."

At present, Beisen's customers include Internet giants such as Tencent and JD.com. In April, Beisen Company announced that it had obtained 110 million yuan in Series C financing led by Jingwei China, Qingyouqian and Sequoia China. Ji Weiguo said: After this financing, Beisen's valuation is close to 1 billion yuan.

And Lu Yuquan, CEO of Resonance Technology, which is positioned as an inter-enterprise financial trading platform, also said that in fact, in the entire To B field, there are not many people who really know how to do it. In July 2014, Resonance Technology received a $10 million Series A investment from IDG Capital. However, Lu Yuquan also clearly felt that since March and April this year, investment institutions' enthusiasm for the To B field has increased, because more investors are looking for him.

Demand: Now is the wind

In 2010, Beisen hopes to expand its business field and provide talent management software such as recruitment, performance, and succession in an online mode. Ji Weiguo went to see the technical director of My space, and the other party told him, "This model is called SaaS, and it is very popular in Silicon Valley." Ji Weiguo was very excited, and hurriedly went home and searched online, but the results were disappointing, "because online experts said: 'This is pure It's a concept, old wine in new bottle'."

Forrester, an independent technology and market research firm, said in a 2012 report: "As a disruptive force in the software field, the SaaS market accounts for only a quarter of the global software market, while 123 market segments On the other hand, SaaS will have little or no impact on the traditional software sales model.”

Today, Forrester may need to revisit that assertion. In the future, all software is likely to be delivered through cloud services

form to deliver.

"From 2011 to 2013, the growth of the cloud market was very stable. But in 2014, there was a rapid growth, and the size of the entire market increased by 4 times in one year. This shows that enterprise users have begun to accept the cloud and SaaS on a large scale. This has happened." Niu Kuiguang believes that as users' concerns about data security become less and less, cloud applications will be further strengthened, and this general trend will continue in the next 5-10 years.

The rapid development of consumer business is also promoting the vigorous development of the enterprise-level service market, because these consumer business companies are the target customers of enterprise-level services. The two To C apps "Footnote" and "Kuikan Comics" that once topped the Moments, both use the cloud storage and cloud services provided by Qiniu Cloud Storage. Li Jing, head of Qiniu Cloud Storage, said that start-ups should

Pay attention to the use of the cloud, because once an app suddenly becomes popular, traditional self-built servers will often go down due to data overload when faced with this sudden increase in user access. Kuaikan comics and Zuji both used Qiniu's cloud storage service due to the sudden increase in user downloads.

Li Jing said that for cloud service providers, IaaS (Infrastructure as a Service, infrastructure as a service, consumers can obtain services from complete computer infrastructure through the Internet) and PaaS (Platform as a Service, platform as a service, the server Platform as a service business model) is gradually becoming non-mainstream, and its boundaries are becoming more and more blurred, SaaS is becoming mainstream.

"I think few people doubt the bright prospects of cloud services now. The enterprise service market is a trillion-level market. New enterprise service businesses based on cloud services can create several hundred billion-scale emerging companies." Qiniu Cloud Storage President Lv Guihua said that in the past few years, Qiniu Cloud Storage has maintained an annual growth rate of more than 10 times.

There are more than 200,000 enterprise users on the deposit platform, including companies in various To C fields such as Hikvision, SF Express, Ping An, ZTE, OPPO, BBK, and Momo. In terms of business data, Qiniu Cloud stores more than 50 billion files in total, and uploads more than 500 million files every day.

"Why now, not a year ago, or a year later? The outlet is indeed very important." Huanxin CEO Liu Junyan said, "The most important thing is the general trend, and the demand has been recognized."

Huanxin is a mobile instant messaging cloud service provider. It has completed 4 rounds of financing within one year of its launch. Among them, Gao, the angel round is Jingwei China, the A round is SIG, and the A+ round is Sequoia Capital. On July 28, Huanxin announced that it had received US$12.5 million in Series B financing, led by Sequoia Capital and followed by Matrix Partners China and SIG.

Such frequent financing speeds are rare even in the To C field. The capital market's recognition of companies like Huanxin is mainly because there is enough market support behind them. In North America, customer service software market purchases totaled $9.6 billion in 2015. Two "unicorn" companies have emerged in this market: Zendesk and Freshdesk. Among them, Zendesk currently has a market value of 1.89 billion US dollars and annual sales of 187 million US dollars; and Freshdesk received an E-round financing of 50 million US dollars in April 2015, with a valuation of over 1 billion US dollars.

Compared with the lag of China's enterprise-level service market, the demand from enterprises is very strong. Due to market and social changes, China's demographic dividend has passed. In the long run, the annual 10%-15% increase in labor costs has become a trend, which requires that the operational efficiency of traditional enterprises must be greatly improved to be sustainable.

Xiong Fei once went to Hangzhou for research. A small warehouse with only 60 or 70 people has already used the cloud warehouse management system. The other party told Xiong Fei that the reason for choosing to use enterprise service cloud software is that five years ago, the cost of food and lodging per worker was about 4,000 yuan, and now it has risen to 7,000 yuan. Relying on technology to reduce labor costs has become the only option. In addition, 58 Daojia, Chuchu Street and other e-commerce companies have used Huanxin's customer service cloud software, and the reason behind it is that they are eager to improve the user experience.

The mobile Internet and social economy factors also played a catalyst role. With the development of people's habits of using the mobile Internet, changes in user behavior are quietly triggering changes, which has led to the obvious trend of mobilization in e-commerce, O2O, Internet finance, education, tourism and other industries. App developers and business owners are striving to create a closed loop of in-app transactions, that is, from the display of goods and services, to pre-sale consultation, payment, logistics, returns, and after-sale processes, forming a closed loop within the app.

Various cloud services are also gradually shifting to the mobile side. Consulting firm Gartner predicts that in customer service alone, more than 70% of customer service requests will come from mobile by the end of 2017. In 2014, the on-site monitoring of Alibaba's "Double Eleven" showed that the mobile terminal contributed 24.3 billion yuan to the total turnover of 57.1 billion yuan, and the proportion of mobile terminal transaction volume has a tendency to exceed that of PC terminal.

In addition, the Gartner report shows that worldwide IT spending in 2014 was approximately $3.8 trillion, and the enterprise market has almost 20 times the capacity of the entire Internet market. There is no doubt that such a huge market is enough to breed more entrepreneurial unicorns.

Entrepreneurship: the world of more post-70s veterans

"Different from the To C field, the To B field is more like the entrepreneurial world of the post-70s veterans. The fundamental reason is that the To B field is more complicated than the To C business." Zuo Lingye said.

In the past 12 years, Zhang Ximeng has been engaged in data analysis, marketing, sales and website and other data-related work in eBay, Petco, Epson, LinkedIn and other companies. Over the past five years, he has single-handedly built the entire LinkedIn and revenue-related data analytics team. In February 2015, Zhang Ximeng left LinkedIn.

Zhang Ximeng carefully studied the US and Chinese markets and found that the US has now entered a stage of intensive cultivation, and there are similar competitors in each field eroding the market share of traditional enterprise software. The US business rules are relatively clear, and there is no chance to do large-scale platforms like SAP and Oracle. However, China is an almost blank market.

Many years of work experience in the field of data analysis made Zhang Ximeng realize that although SaaS-based cloud services flourished in the United States, they also caused many data islands. "This is the biggest pain point because of the amount of big data and the diversity of data sources." Zhang Ximeng said that what he has to do is data cleaning, just like turning a polluted river into clean water.

Procedure. “In the past few years, 90% of the work in big data analysis has been data cleaning, but it is the remaining 10% that really generates value. We hope that the products we make can one day fully automate that 90% of the work. "Currently, Zhang Mengxi is the CEO of GrowingIO, a big data analysis company.

Ji Weiguo is also a post-70s generation. In fact, this year is the 13th year of Beisen's business. It was not until 2010 that Beisen received the first financing from Shenzhen Venture Capital. At that time, the other party valued its talent management technology, not SaaS. In 2012, Beisen entered the SaaS field. "We didn't want to enter a brand new Sass software market at that time. What we wanted to do was the talent management software market. We just made the model of Sass and caught up with the development of Sass." Ji Weiguo said.

Sales Easy CEO Shi Yanze is one of the first Internet people in China. He has 17 years of work experience in the enterprise software industry and was an early employee of Yinghaiwei. In 2011, Shi Yanze created a mobile, cloud and social networking platform

CRM (Customer Relationship Management) enterprises, products include business card scanning, customer visit check-in, sales opportunities, etc., to help enterprises manage sales in a refined manner. Unlike Salesforce, the originator of SaaS, Sales Easy CRM is mobile-based from the beginning.

In 2014, Sales Easy CRM's annual performance increased by 11 times, and the company's valuation increased by 9 times. Shi Yanze still remembers the scene in 2012 when Sales Easy was looking for investment. At that time in 2012, most VCs would not look at toB projects, and it was common to be closed. But fortunately, Sequoia Capital is more forward-looking. In early 2013, Sequoia invested in the A round of sales, and in the middle of 2014, it was added to the B round. In 2015, the C round jointly invested 15 million US dollars with Matrix Partners China.

Before starting his business in 2005, Wen Rong, the founder of Jindao, had done large-scale ERP (Enterprise Resource Planning) implementation work for companies such as Haier and Hisense. The founding team of Tongdun Technology is composed of technical executives and experts from top Internet companies such as Ali, PayPal, SAS, ThreatMetrix, etc., and has a number of industry-leading patents.

However, among the many interviewees, Li Hui, CEO of Mike CRM, a form tool that manages contacts, is an exception. But the 26-year-old girl also had previous work experience in big companies such as Baidu.

"In the To C field, if you love what you do, you may become a good product manager. But in the To B field, you are dealing with enterprise customers, which includes many factors, such as enterprise employees The use of products under different working conditions, and the connection with various internal processes of the enterprise. This is not accumulated in one or two days, nor can it be developed in one or two days." Zuo Lingye said, with the To C field In contrast, entrepreneurship in the To B field requires more industry accumulation. Lu Yuquan of Resonance Technology also said that To B companies need more expert talents.

"We understand the needs of customers in the field of basic software. If we cannot meet customer needs, there will be various reasons, and the most likely reason is technical." He Xiaoyang, founder of OneAPM, said that many experts in the APM field he knew started in 2004. Promoted in China, we met Matrix Partners in 2013. In the past 10 years, APM has not had any successful cases in China, which is very sensational, so everyone thinks that the APM market is worthless. "

OneAPM is a service provider that provides APM solutions for enterprises and developers. Since the launch of OneAPM products in 2013, it has completed 3 rounds of financing. Among them, in March this year, OneAPM completed the C round of financing of 165 million yuan and became the lead investment, with Jingwei and Qiming Venture Capital following the investment.

Business model: Profit is not in the moment

Before the transformation of the SaaS model, Beisen had at least tens of millions of yuan in profits every year. However, after the transformation in 2010, Beisen launched several versions of recruitment software successively, but the results were not satisfactory. In 2012, it became the worst year in Beisen's history, with a loss of nearly 20 million yuan.

It was not until May 2013 that the Beisen recruitment management system was upgraded to V5.0, becoming the recruitment software with the largest market share that year, and Beisen achieved profitability again.

However, Zuo Lingye at this time suggested that they think carefully about the stage problem. "There should be no profit at this stage of SaaS. If there is profit, it means that our investment is not enough, which may leave a lot of development space for our competitors." Ji Weiguo said, for this reason, in 2014, Zuo Lingye led With Ji Weiguo and others went to the United States.

The trip to the United States made Ji Weiguo realize that it is a very bad thing for a company to have a profit from the beginning. SasS software is not without profit, but its profit should not be in the current period.

Ji Weiguo said that only then did he understand the financial model of the entire SasS. Different from the one-time sale by traditional software service providers, because the software for enterprise services is in the cloud, which means that the software is sold at a subscription fee rather than a license fee. License fees are usually a one-time payment for use, while subscription fees are paid on an individual basis during the subscription period. This will generate a steady stream of revenue, but until they reach scale, the company can only keep losing money.

"For example, for the traditional software service UFIDA, if a customer charges 500,000 yuan, Beisen may only charge 100,000 yuan per year, based on five years. If UFIDA has a 20% profit, I should have serious problems in the first year. Losses, because the other 400,000 yuan has not been recovered, is such a logic." Ji Weiguo said that in the United States, the capital market values SaaS companies, and the renewal rate is more important.

"In 2013, Tiger Fund told us that there is no need to worry about making money." Jin Goal Wen Rong said, according to calculations, the value of enterprises using Jin Goal is about 10,000 yuan per year. If the scale of 10 million enterprises is calculated, The social value provided by the current goal is 100 billion. The next step is how to convert social value into commercial value.

Salesforce and Workday are seen as the most successful cases of the SaaS model, with a current market value of about $48 billion. Its 2016 fiscal first quarter (as of April 30, 2015) financial report shows that the total revenue in the first fiscal quarter was 1.51 billion US dollars,

Year-on-year growth reached 23%. As more and more large enterprises use the company's products, Salesforce further raised its revenue forecast for the full fiscal year of 2016.

Founded in 2005, Workday is a cloud-based human resources and financial planning software provider. At the time of its IPO in October 2012, Workday was still in a state of severe losses. Its prospectus shows that in fiscal years 2007-2011, Workday's net losses were $24.78 million, $51.48 million, $49.94 million, $56.21 million, and $79.62 million, but at the same time, its revenue also showed explosive growth. In fiscal years 2007-2011, Workday's revenue was 455,000, 6,398,000, 25,245,000, 68,055,000, and 134.4 million US dollars, respectively. Therefore, Workday's profitability is actually improving gradually, and the net loss rate is decreasing year by year, from -5446% in fiscal year 2007 to -59.24% in fiscal year 2011. Its IPO market value reached $9.5 billion on its first day. Workday's first-quarter 2015 financial report showed that its first-quarter revenue was $245 million, a year-on-year growth rate of 70%.

"A healthy To B project will increase its sales by 2-3 times a year. Although it will not increase dozens of times a year like a To C project, it can continue to charge due to high user stickiness. Wait until 5-7 years. After that, it can become a very profitable company with hundreds of millions of revenue." Xiong Fei said.

These companies will continue to face significant challenges and resist temptations until they become profitable. When Qiniu Cloud Storage was just starting out, there were often potential customers who wanted them to help develop and maintain a private cloud storage system, and were willing to pay a lot of money. "At that time, the public cloud had not yet developed. To be honest, we were very tempted by this opportunity to make quick money. But after internal discussions, we found that a team like ours could only choose one way. If we want to do storage software, we can only Abandon the public cloud line." said Lu Guihua, President of Qiniu.

The previous experience of large-scale ERP implementation for Haier, Hisense and other companies has made Wen Rong, the founder of Jindao, firm in his determination to only make standardized products. "User needs are constantly changing, and the implementation team has to extend the project duration. After many personalized needs are met, users don't use it. This is frustrating for the team."

The principle of Beisen CEO Ji Weiguo is to only do SaaS and refuse to do the installation version. "The installation version is a pit. When we are doing cloud services, there will be customers who request to develop a separate installation version." Ji Weiguo mentioned that a domestic telecom infrastructure manufacturer, because the previous use of foreign recruitment management of 6 million US dollars per year The system is not suitable for them, and I hope Beisen can help them develop an installation version with a budget of 20 million yuan. "My product manager looked at you with aggrieved eyes, and the technicians were very excited and looked at you eagerly. The product manager means the boss, don't take this job, the technician means the boss, take it down, take it 20 million down." Ji Weiguo finally decided not to do it. "Why does the product manager look like that, hoping not to accept the order of 10 million yuan? Because after accepting it, it will be a quagmire, and you will not be able to climb out. UFIDA has some projects that started with 20 million yuan from the beginning. After finishing it, it turned out that it didn't work for 8 years."

Zuo Lingye said that in the enterprise service market, there is only one long-term evaluation criterion for a company, which is revenue. Public companies in the fastest-growing corporate services sector in the U.S. typically have market capitalizations around ten times their revenue. "But the team doing corporate services must have enough patience."